pei energy commission presentation

www.traceyallenconsulting.com

PEI Energy Commission

Tracey Allen


Current Situation – PEI Strengths• Renewable Success - We have a successful Wind Farm generating $11.6 million a year for the Government of PEI. PEI Energy Corporation 2009-10 Annual Report.

• Small Size - We are still community focused i.e Homes (53,135 with avg 2.6 persons), population (140,985), land area (1,404,547 acres). www.gov.pe.ca/photos/original/pt_annualreview.pdf

• Building Expertise - We have the expertise to develop wind energy further with Holland College’s new programs for wind technicians, and the expertise within PEI Energy Corporation and various support organizations (research, OEE, etc.).

http://www.gov.pe.ca/photos/original/pt_annualreview.pdf


Canadian Wind Map


Current Situation – PEI Strengths• We have one of the best locations in Canada for wind energy either by water or land according to the Wind Atlas. http://www.gov.pe.ca/envengfor/windatlas/

•We have existing energy reduction resources in place to be used with Maritime Electric resources and the Office of Energy Efficiency.

• Summerside Electric has implemented electric charging stations for electric cars and has successfully established wind energy.

http://www.gov.pe.ca/envengfor/windatlas/


Current Situation – PEI Weaknesses

• Currently the Province is seeking to reduce debt, there is no extra money to build cable infrastructure. ($77 Million)

• The Island continues to rely primarily on expensive imported fossil fuels to heat, light and power its homes, businesses and institutions.

• Our energy supply is struggling to keep pace with rising demand.


PEI Energy Costs VS PEI Tax Costs


Current Situation – PEI Weaknesses• Most electricity is derived from off Island generation and transmitted to

Prince Edward Island via two (35 years old) 100 MW submarine cables.

• The peak electricity load for Prince Edward Island now exceeds 220 megawatts (MW) and total annual electric energy consumption is about 1.1 million megawatt-hours (MWh).

• Prince Edward Island, with the exception of Canada’s northern communities, has the highest electricity prices in Canada.

• Prince Edward Island has 164 MW of wind generating assets owned by both private and public interests. Only 74 MW is dedicated for on Island distribution and the remainder is exported. (90 MW)


PEI Weaknesses• Point Lepreau has been out of service for 3+ years and while it is costing PEI

Taxpayers $47 million since March 2011 plus $2 million each month until it is refurbished (another $38 million if it starts in Oct 2012) in deferred payment obligations we haven’t been receiving reliable power from this plant. When and if it does start PEI will receive 30MW a year for an estimated 25years or $3.4 million/year plus the transfer costs via the cable.

• Transmission of this imported electricity is reliant upon two 35 year old undersea cables connecting Prince Edward Island to NB. While these cables are still in good condition a $77 million new one is being suggested.

• By the very nature of cables over distance, some PEI power is lost in transition.

• A large amount of water is used in energy production for other than renewable energy (except nuclear which uses a large quantity of water) – Charlottetown`s water capacity is at 90% and shows no signs of reduction with new developments in the area.


PEI Impact from Energy


Current Situation – Opportunities

• Currently there is funding available for the development of renewable energy. Municipal funds, Federal, etc.

• There are solar panel power plants being established worldwide http://www.nanosolar.com/power-plants – Green. Local. Profitable and deployable within months. No fuel

risk, minimal water use, no noise or pollution.

• Solar and other renewable energy systems are becoming more cost effective with India and other countries adapting solar at a fast pace. http://www.sustainablebusiness.com/index.cfm/go/news.display/id/23386

http://www.nanosolar.com/power-plants

http://www.sustainablebusiness.com/index.cfm/go/news.display/id/23386


Solar Power Plant


Opportunities

• Ocean Thermal Energy Conversion uses the temperature difference between surface and deep-sea water to generate electricity – and though it has an efficiency of just 1-3% - researchers believe an OTEC power plant could deliver up to 250MW of clean power, equivalent to one eighth of a large nuclear power plant, or one quarter of an average fossil fuel power plant.

http://en.wikipedia.org/wiki/OTEC


Ocean Energy Island http://www.gizmag.com/energy-island-otec/8714/ or

http://www.otecnews.org/otec-articles/ocean-thermal-energy-conversion-otec-by-l-a-vega-ph-d/

http://www.gizmag.com/energy-island-otec/8714/

http://www.otecnews.org/otec-articles/ocean-thermal-energy-conversion-otec-by-l-a-vega-ph-d/


Current Situation - Opportunities• “Community-run renewable energy projects could cut costs and

emissions, according to a report published by UK think-tank ResPublica. The study warns that continued government support for a ‘closed shop’ of major energy firms could have a negative impact on the UK’s climate, social and economic targets.” http://www.respublica.org.uk/item/Re-energising-Our-Communities-Transforming-the-energy-market-through-local-energy-production-

• Electric powered cars are becoming more mainstream. • Ontario and Western Provinces are implementing programs where

residents put solar panels owned by a company on their roof to feed into the grid to the benefit of both home owners and the energy suppliers.

• Over half of Germany's renewable energy owned by citizens & farmers, not utility companies

http://www.respublica.org.uk/item/Re-energising-Our-Communities-Transforming-the-energy-market-through-local-energy-production-




Current Situation – Threats• It is only a matter of time before Federal transfer payments

are non-existent or used almost entirely for health care costs. No future infrastructure money.

• Peak oil occurred in 2006 and extracting oil will only become more expensive.

• Nuclear reactors have been having troubles of late i.e Long Island, Chernobyl, Japan, etc.

• Globally the financial situation is becoming unknown – Greece, Europe, USA, etc.


My Suggestions/Recommendations

• Instead of developing more cable to import high priced energy from non-renewable sources……PEI could create their own Community Renewable Energy System – unique to the Island. Made for Islanders by Islanders – we can power our world.– By stopping the export of any wind energy there is likely

savings in energy we have to pay to import. Numbers that measure the true cost per unit of electricity by type would be helpful i.e cost of cables, plus maintenance costs plus the actual purchase price of energy totalled to give a true cost of each type of energy used.


Wind Options


Social Implications of Wind

• The previous graphics showed vertical wind energy that addresses:

– noise, aesthetics, impact on birds, etc. – The towers are lower to the ground, lower noise,

can look very nice, and birds see them. – They are perfect for community driven models.


Value for Cost• For $77 million for a new cable or $47million and growing for nuclear

power we can buy quite a bit of renewable energy. – This total represents or $885 per resident - 2.6 people per household means

$2,300 per household – At $10,000 or $6,000 per wind turbine or average of $8,000 = 15,500 wind

turbines to spread across 50,000 homes almost enough to power the island. If you factor in we still have to buy the power to come across the cable and that we have existing wind farms – we might be able to outfit the entire island.

• Wind Energy is cost effective http://thetyee.ca/Blogs/TheHook/Environment/2011/02/14/Wind-power-prices-drop-to-coal-power-levels/

• Nuclear Power based on $75 million deferred payments for 30mw per year 25 years plus transfer costs or $113,333 per 1mw (a megawatt hour is 1 million W·h) so 1 million kwh or .113333cents/kwh Double that of wind.

http://thetyee.ca/Blogs/TheHook/Environment/2011/02/14/Wind-power-prices-drop-to-coal-power-levels/

http://thetyee.ca/Blogs/TheHook/Environment/2011/02/14/Wind-power-prices-drop-to-coal-power-levels/


My Point

• The point to all this is that things are changing both within PEI and our external environment and we need to adapt to this change.

• I’m hopefully that the PEI Energy Commission can move beyond the old ways of expensive cables and private enterprise and look to a community model similar to other jurisdictions. To be sustainable PEI must move beyond expensive infrastructure to develop and maintain.


My Suggestions/Recommendations• Regulations – consider the restriction (importation/sale) of residential

appliances with too large an energy footprint. (regionally to prevent the pop can syndrome)

– Via regulations encourage people to build smaller more efficient homes to reduce energy needs.

• Optimizing Energy Resources in Government – PEI Energy Corporation oversees all energy education and

development within PEI. IRAC provides their analyst to PEI Energy Corporation to focus on all regulation issues related to energy. PEI Office of Energy Efficiency provides energy reduction staff to PEI Energy Corporation to provide community services to educate on energy reduction.


Suggestions/Recommendations• We have a successful, profitable wind farm – I propose

that we don’t sell a profitable infrastructure to private ownership.

• Don’t buy old equipment with no ROI. The cost to purchase old technology of oil fired will cost taxpayers money with no real return on investment if they are retired.

• Don’t sell wind energy or buy nuclear. Instead of exporting 90MW of wind energy – don’t buy 30MW at $85million from nuclear energy.


Community Supported Energy Program - CSEP

• The concept that each community within Prince Edward Island work together to gain knowledge, develop systems and supports to provide independent energy.– Energy audit, – community workshops to develop energy plans, renewable 101, – Energy Diet Challenge communities that reduce the most, and more.

Three phase program to educate, participate and develop sustainable energy systems.

• A Canadian example Nova Scotia community of Cumberland-Colchester Costs $2million and powers 300 homes john.morriscode.ca/blog/293 and a UK Project http://www.energyshare.com

http://john.morriscode.ca/blog/293

http://www.energyshare.com/


Thank you

pei energy commission presentation

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